Case Number: ITA 887/DEL/2021
Appellant: Sophisticated Industrial Materials Analytic Labs Pvt. Ltd., New Delhi
Respondent: ADIT CPC, Bengaluru
Assessment Year: 2019-20
Result: Appeal Allowed
Case Filed on: 2021-07-22
Order Type: Final Tribunal Order
Date of Order: 2022-02-28
Pronounced on: 2022-02-28
The case ITA No. 887/DEL/2021 involves an appeal filed by Sophisticated Industrial Materials Analytic Labs Pvt. Ltd. against the Additional Director of Income Tax (ADIT) CPC, Bengaluru, challenging the disallowance of employee contributions towards ESI and EPF under Section 36(1)(va) of the Income Tax Act for the assessment year 2019-20. The primary issue at hand was whether the delayed payments of employee contributions, deposited before the due date of filing the income tax return, are allowable deductions.
Sophisticated Industrial Materials Analytic Labs Pvt. Ltd., engaged in industrial materials analysis, filed its income tax return for the assessment year 2019-20. During the assessment proceedings, the Assessing Officer (AO) disallowed the contributions towards ESI and EPF, citing delays in depositing the amounts as per the due dates prescribed under the respective Acts. The appellant contended that the contributions were deposited before the due date of filing the income tax return under Section 139(1) of the Income Tax Act.
The grounds of appeal raised by the appellant include:
The Tribunal, comprising Judicial Member Sh. Saktijit Dey and Accountant Member Dr. B. R. R. Kumar, reviewed the submissions and facts presented by both parties. The key findings are as follows:
The Tribunal concluded that no disallowance is warranted for delayed payments of employee contributions towards ESI and EPF, provided the amounts are deposited before the due date of filing the income tax return. The appeal filed by Sophisticated Industrial Materials Analytic Labs Pvt. Ltd. was allowed, and the disallowance made by the AO was set aside.
Order pronounced in the open court on 28th February, 2022.
Sd/- (Saktijit Dey)
JUDICIAL MEMBER
Sd/- (Dr. B. R. R. Kumar)
ACCOUNTANT MEMBER
Date: 28th February, 2022
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(Appeals)
5. DR: ITAT
Assistant Registrar, ITAT, New Delhi
Sophisticated Industrial Materials Analytic Labs vs. ADIT CPC: Appeal on ESI and EPF Contributions
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